A Chinese national flag flies in front of COSCO's headquarters in Beijing August 26, 2010. REUTERS/Barry Huang

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SHANGHAI (Reuters) - China COSCO Holdings Co Ltd <601919.SS><1919.HK> fell to a first-half loss hurt by a persistent slump in the global container market, the world's fourth largest container shipper said on Thursday.

COSCO Shipping reported a first-half loss of 7.2 billion yuan ($1.08 billion yuan) versus a profit of 1.9 billion a year earlier, the company said in a filing to the Shanghai stock exchange.

COSCO is grappling with weak global demand that has dragged down the sector.

In the first quarter, it reported a net loss of 4.5 billion yuan.

China COSCO is part of China Cosco Shipping Corporation (COSCOCS), a shipping giant created earlier this year from the state-driven merger of former rivals China Ocean Shipping (Group) Company [COSCO.UL] and China Shipping Group [CNSHI.UL].

Global shipping is mired in its longest downturn in three decades as operators struggle with an oversupply of vessels and depressed freight rates.